United Credit Bureau and Experian launches a credit fraud prevention service
The new innovative service called National Hunter is developed by Experian, the global information services company. In Russia, the work over this service has been under way since early 2011 as part of the project embracing five major Russian banks.
“Application fraud is a common problem, relevant both for developing and mature markets. The level of fraud in retail lending in Russia will also be growing, unless active countermeasures are taken. Hunter, already implemented by Experian in the UK, USA, Spain, South Africa, South Korea, Australia, has already served to reduce the scale of this global problem”, - said Director General at United Credit Bureau, Head of the Moscow Branch of Experian CIS Limited Daniel Zelenski.
The immediate effect of connecting to Hunter would be minimizing the share of fraud in the participating banks’ loan portfolios, and, as a consequence, material reduction in financial losses from bad debts. It can also contribute to improved operational efficiency, as lenders are able to block obvious fraud, focus resource on marginal cases and speed up the acceptance of genuine customers. .
Optimized for banks specializing in retail lending, National Hunter provides a unique collaborative environment for organisations to identify fraudsters at the point of application where elements of their application match previously seen fraud activity.
For identification of suspicious applications, the new system uses a wide range of various factors. Thus, inconsistencies in loan applications are detected, as well as data matching with confirmed fraud (i.e. matches with applications that have already been defined as fraud).
National Hunter enjoys, on the one hand, all advantages of a credit bureau: presence of quality data and cutting-edge technologies for their processing, and on the other hand – the benefits of specialized Experian software, together with the company’s vast experience of data accumulation for fraud detection.
Similar Experian systems in other countries have enabled banks to significantly improve their ability to detect and prevent fraud. The higher the number of banks using Hunter, the greater the pool of shared fraud intelligence, and the more advanced and customer-oriented our banking system will be as a whole.
“When developing the system, we focused both on reaching the ultimate level of accuracy in defining the risk area and on building maximally universal system, so that banks with most varied business processes for working loan applications could use it. At the same time, we strictly abide by the Russian personal data legislation. In particular, to ensure the system compliance with the legislative requirements, a data depersonalization mechanism has been developed”, - said D. Zelenski.
Experian is the global leader in providing lending solutions. The company helps banks to manage credit risk, prevent fraud, target marketing offers and automate decision making. Experian has operated on the market for more than 30 years. Experian plc is listed on the London Stock Exchange (EXPN) and is a constituent of the FTSE 100 index. Experian corporate headquarters are in Dublin, Ireland, and its operational headquarters are located in Costa Mesa, California, and Nottingham, UK. The group employs approximately 15,000 people, supporting clients in more than 80 countries. Experian has representative offices in 41 countries. The company income for financial year 2011 exceeded $4 billion.
*** United Credit Bureau
United Credit Bureau (Experian Interfax Credit Bureau) was established in 2004 and is one of the three largest Russia’s credit bureaus. The bureau brings together the capabilities of Sberbank, major Russian credit institution, Experian, global credit bureau leader, and Interfax, chief Russian information agency and creator of SPARK, Russia’s leading information system for assessing corporate credit risks. The bureau ranks among its customers more than 200 banks and mobile phone operators; its data base, including credit histories and credit request data, has more than 89 million records. The bureau is number one in the field of developing credit risk assessment services, inclusive of scorings, and in fraud prevention.